1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what interest rate must it earn? 2-What is the future value of a 5-year ordinary annuity of $1000 if the appropriate interest rate is 5%? What is the present value of the annuity?

Q: Your insurance company offered you an annuity that pays you $100 at the end of each year. The life…

A: GIVEN, A= $100 N=10  R=8%

Q: Calculate  time value of money : If I am to receive $10k in 5 years, given a 5% rate of return, what…

A: Time value of money helps the management for decision making. as the value of money, today is high…

Q: What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?

A: Details given are : Annual cashflow = $300 time period = 5 years Interest rate = 8% We require to…

Q: What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an…

A: When the Cash Flows occurs at the end of each period, the annuity is called a Regular Annuity. In…

Q: What is the present value of the payments if they are in the form of an ordinary annuity? What is…

A: The present value can be calculated as follows : Calculations for above :

Q: 1. What is the present worth of a P1000 annuity starting at the end of the third year and continuing…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: (a) Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period…

A: 1. A loan is the money is given to another party in exchange for repayment of the loan principal…

Q: What’s the present value of a perpetuity that pays $1,000 per year beginning1 year from now, if the…

A: Computation:

Q: 4. You want to have a monthly income of $2000 from a fixed-term annuity when you retire. Take the…

A: Time value concept Receiving today an amount is of more value than that of receiving the same amount…

Q: What's the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: For ordinary annuity, payment takes place at the end of every period and for annuity due, payment…

Q: Give an annual opportunity cost of 10%,what is the future value of a $3,000 ordinary annuity for 10…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: 5. Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose you put $ 525 a month for retirement into an annuity earning 5.25% compounded monthly. If…

A: An investment decision may involve regular cashflows of equal amount during successive years in…

Q: 5. Suppose an annuity at 4% compounded semi-annually will pay $4000 at the end of each 6-month…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: A. What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your…

A: A. Future value is $610.51.

Q: Suppose that an annuity will provide for 20 annual payments of 1240 dollars, with the first payment…

A: Total number of payments "N" is 20 Annual payments "PMT" is $1,240 Interest rate is 8.8% convertible…

Q: Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per…

A: Since you have not mentioned the specific question we will just answer the first question in case…

Q: What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6…

A: Ordinary Annuity =$2000 Years(n) = 4 Interest rate(r) = 6% Future Value = Ordinary annuity * […

Q: Explain Step by Step What is the present value of an annuity that pays $X per month for 10 years,…

A: PVA refers to the amount that will be acceptable today if the series of payments is made on future…

Q: much of the value of the account can be attributed to the interest earned? 5)You want have $12,000…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1- If the future value of an ordinary, seven-year annuity is $6,000 and interest rates are 7.5…

A: Note: As per the policy, we are supposed to solve the first question at a time. Kindly repost the…

Q: b. Calculate the present value of $5,000 received five years from today if your investment pays 6%…

A: The concept of present value implies that a sum of money shares are worth more than for the amount…

Q: You invest $1000 into an account that accrues interest monthly at a rate of 0.16%. (a) How much…

A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an…

A: Calculation of future value of annuity:

Q: Suppose you save $4,000 per year at the end of each year for 3 years and earn 5% interest per year.…

A: Annuity is no. of payments which is equal in size and made at equal interval of time. Person get…

Q: The present value of an annuity is payable for 4 years, with the first payment at the end of 10…

A: An annuity is a series of payments for a certain period of time and at a certain rate of interest.…

Q: What is the present value of a $400 annuity payment over 5 years if interest rates are 6 percent?

A: given, A = $400 r=6% n=5 years

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an…

A: Given information: Annual payment is $700 Interest rate is 12% Number of years is 5

Q: 1.1) For $20,000, you can purchase a five-year annuity that will pay $5000 per year for five years.…

A: Here, Details of 1.1 Present Value (PV) is $20,000 Annuity Payment (PMT) is $5,000 Time Period…

Q: What is the future value of an annuity with annual cashflows of $4,000 for 38 years? The interest…

A: Future value of an annuity is the future value of stream of same annual cash flows which takes place…

Q: Suppose you save $500 per year at the end of each year for 15 years and earn 8.25% interest per…

A: When a payment is made repeatedly at regular time intervals it is referred to as Annuity. Present…

Q: d. Calculate the future sum of $1,000, given that it will be held in the bank for 5 years earning an…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years?…

A: A perpetuity is payment for ever An annuity is payment at the end of the period for a limited period…

Q: What is the future value of an annuity due that promises $60,000 per year for 10 years if the…

A: Annuity is regular payment to be made to investor. There are two types of annuities 1. Ordinary…

Q: What is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8…

A: Given details are: Annuity payment (PMT) = $1000 Time period (n) = 4 years Interest rate (I/Y) = 8%…

Q: What is the present value of this annuity?

A: Introduction: The term annuity can be defined as set of payments that is received by the investor at…

Q: What is the future value of an $800 annuity payment over 10 years if the interest rates are 6…

A: Future value is the value of an asset in the future. It is based on an assumed rate of growth. It is…

Q: How much money should you invest at an interest rate of 6% compounded monthly, to have P400,000 in 5…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: What is the present value of an annuity due of $10,000 per year, with the first cash flow received 5…

A: Present value of an annuity the present value of future cashflows